0:00:01.000,0:00:02.062
Have you ever noticed

0:00:02.062,0:00:04.804
when you ask someone to talk[br]about a change they're making

0:00:04.804,0:00:06.710
for the better in their personal lives,

0:00:06.710,0:00:08.952
they're often really energetic?

0:00:09.233,0:00:11.796
Whether it's training for a marathon,

0:00:11.796,0:00:13.188
picking up an old hobby,

0:00:13.188,0:00:15.019
or learning a new skill,

0:00:15.019,0:00:16.192
for most people,

0:00:16.192,0:00:21.459
self-transformation projects occupy[br]a very positive emotional space.

0:00:21.951,0:00:24.364
Self-transformation is empowering,

0:00:24.364,0:00:25.412
energizing,

0:00:25.412,0:00:26.863
even exhilirating.

0:00:26.863,0:00:30.691
I mean just take a look at some[br]of the titles of self-help books:

0:00:30.691,0:00:33.326
"Awaken the Giant Within,"

0:00:33.326,0:00:35.856
"Practicing the Power of Now,"

0:00:35.856,0:00:38.402
or here's a great one[br]we can all relate to,

0:00:38.402,0:00:40.661
"You are a Badass:

0:00:40.661,0:00:45.583
How to Stop Doubting Your Greatness[br]and Start Living an Awesome Life."

0:00:45.583,0:00:46.578
(Laughter)

0:00:48.293,0:00:51.571
When it comes to self-transformation,

0:00:51.571,0:00:55.545
you can't help but get[br]a sense of the excitement.

0:00:57.092,0:01:00.471
But there's another type of transformation

0:01:00.471,0:01:03.708
that occupies a very[br]different emotional space.

0:01:04.288,0:01:07.058
The transformation of organizations.

0:01:07.943,0:01:09.236
If you're like most people,

0:01:09.236,0:01:13.939
when you hear the words "Our organization[br]is going to start a transformation,"

0:01:13.939,0:01:15.794
you're thinking, "Uh oh."

0:01:15.794,0:01:16.794
(Laughter)

0:01:16.794,0:01:18.427
"Lay offs."

0:01:19.079,0:01:21.026
The blood drains from your face,

0:01:21.026,0:01:23.942
your mind goes into overdrive,

0:01:23.942,0:01:27.927
frantically searching[br]for some place to run and hide.

0:01:28.357,0:01:29.870
Well you can run,

0:01:29.870,0:01:31.771
but you really can't hide.

0:01:32.265,0:01:36.925
Most of us spend the majority of our[br]waking hours involved in organizations.

0:01:37.219,0:01:40.420
And due to changes in globalization,

0:01:40.420,0:01:43.075
changes due to advances in technology

0:01:43.075,0:01:44.905
and other factors,

0:01:44.905,0:01:46.158
the reality is,

0:01:46.158,0:01:49.726
is our organizations[br]are constantly having to adapt.

0:01:50.496,0:01:51.766
In fact,

0:01:51.766,0:01:56.304
I call this the era[br]of "always-on" transformation.

0:01:57.519,0:02:00.181
When I shared this I idea[br]with my wife Nicola,

0:02:00.181,0:02:03.105
she said, "Always-on transformation?

0:02:03.105,0:02:05.312
That sounds exhausting."

0:02:05.837,0:02:08.273
And that may be[br]exactly what you're thinking --

0:02:08.273,0:02:09.823
and you would be right.

0:02:09.823,0:02:14.872
Particularly if we continue to approach[br]the transformation of organizations

0:02:14.872,0:02:17.076
the way we always have been.

0:02:17.076,0:02:19.635
But because we can't hide,

0:02:19.635,0:02:21.291
we need to sort out two things.

0:02:21.291,0:02:22.290
First,

0:02:22.290,0:02:24.963
why is transformation so exhausting?

0:02:25.292,0:02:26.286
And second,

0:02:26.286,0:02:27.955
how do we fix it?

0:02:29.443,0:02:30.583
First of all,

0:02:30.583,0:02:33.828
let's acknowledge that change is hard.

0:02:33.828,0:02:35.913
People naturally resist change,

0:02:35.913,0:02:39.136
especially when it's imposed on them.

0:02:39.373,0:02:44.074
But there are things that organizations do[br]that make change even harder

0:02:44.074,0:02:47.231
and more exhausting[br]for people than it needs to be.

0:02:48.007,0:02:49.198
First of all,

0:02:49.198,0:02:52.640
leaders often wait too long to act.

0:02:53.194,0:02:54.307
As a result,

0:02:54.307,0:02:57.306
everything is happening in crisis mode.

0:02:58.617,0:03:01.007
Which of course tends to be exhausting.

0:03:01.787,0:03:04.744
Or, given the urgency,

0:03:04.744,0:03:09.556
what they'll do is they'll just focus[br]on the short-term results,

0:03:09.556,0:03:12.111
but that doesn't give[br]any hope for the future.

0:03:12.709,0:03:17.382
Or they'll just take[br]a superficial, one-off approach,

0:03:17.382,0:03:21.390
hoping that they can return back[br]to business as usual

0:03:21.390,0:03:24.541
as soon as the crisis is over.

0:03:25.728,0:03:26.774
This kind of approach

0:03:26.774,0:03:29.898
is kind of the way some students

0:03:29.898,0:03:33.628
approach preparing for standardized tests.

0:03:34.508,0:03:38.026
In order to get test scores to go up,

0:03:38.026,0:03:40.897
teachers will end up teaching to the test.

0:03:41.361,0:03:42.707
Now that approach can work.

0:03:42.707,0:03:44.876
Test results often do go up,

0:03:44.876,0:03:48.752
but it fails the fundamental[br]goal of education:

0:03:48.752,0:03:53.329
to prepare students to succeed[br]over the long term.

0:03:54.922,0:03:58.387
So given these obstacles,

0:03:58.387,0:04:00.401
what can we do

0:04:00.401,0:04:03.768
to transform the way[br]we transform organizations

0:04:03.768,0:04:06.547
so rather than being exhausting,

0:04:06.547,0:04:09.877
it's actually empowering and energizing?

0:04:10.267,0:04:11.268
To do that,

0:04:11.268,0:04:15.515
we need to focus on five[br]strategic imperatives,

0:04:15.515,0:04:18.112
all of which have one thing in common:

0:04:18.112,0:04:20.922
putting people first.

0:04:21.308,0:04:24.123
The first imperative[br]for putting people first

0:04:24.123,0:04:26.392
is to inspire through purpose.

0:04:26.392,0:04:29.675
Most transformations have[br]financial and operational goals.

0:04:30.092,0:04:34.349
These are important and they[br]can be energizing to leaders,

0:04:34.349,0:04:38.203
but they tend not to be very motivating[br]to most people in the organization.

0:04:38.658,0:04:40.544
To motivate more broadly,

0:04:40.544,0:04:45.285
the transformation needs to connect[br]with a deeper sense of purpose.

0:04:45.960,0:04:47.293
Take LEGO.

0:04:47.953,0:04:52.309
The LEGO Group has become[br]an extraordinary global company.

0:04:52.696,0:04:54.428
Under their very capable leadership,

0:04:54.428,0:04:57.791
they've actually undergone[br]a series of transformations.

0:04:58.072,0:05:01.326
While each of these has had[br]a very specific focus,

0:05:01.326,0:05:02.711
the north star,

0:05:02.711,0:05:04.542
linking and guiding all of them,

0:05:04.542,0:05:07.843
has been Lego's powerful purpose:

0:05:07.843,0:05:12.256
inspire and develop[br]the builders of tomorrow.

0:05:12.593,0:05:14.440
Expanding globally?

0:05:14.440,0:05:16.883
It's not about increasing sales,

0:05:16.883,0:05:21.588
but about giving millions of additional[br]children access to LEGO building bricks.

0:05:22.124,0:05:24.158
Investment and innovation?

0:05:24.159,0:05:26.695
It's not about developing new products,

0:05:26.695,0:05:28.984
but about enabling more children

0:05:28.984,0:05:32.947
to experience the joy[br]of learning through play.

0:05:33.582,0:05:35.367
Not surprisingly,

0:05:35.367,0:05:40.855
that deep sense of purpose tends[br]to be highly motivating to LEGO's people.

0:05:42.384,0:05:45.395
The second imperative[br]for putting people first

0:05:45.395,0:05:47.446
is to go all in.

0:05:48.347,0:05:50.095
Too many transformations

0:05:50.095,0:05:53.861
are nothing more than[br]head-count cutting exercises;

0:05:53.861,0:05:58.009
lay-offs under the guise[br]of transformation.

0:05:58.325,0:06:00.322
In the face of relentless competition,

0:06:00.322,0:06:04.317
it may well be that you will[br]have to take the painful decision

0:06:04.317,0:06:07.096
to downsize the organization,

0:06:07.096,0:06:11.375
just as you may have to lose some weight[br]in order to run a marathon.

0:06:12.095,0:06:13.329
But losing weight alone

0:06:13.329,0:06:16.516
will not get you across[br]the finish line with a winning time.

0:06:16.938,0:06:18.492
To win ...

0:06:18.492,0:06:20.622
you need to go all in.

0:06:21.032,0:06:24.477
You need to go all in.

0:06:25.379,0:06:28.015
Rather than just cutting costs,

0:06:28.015,0:06:30.541
you need to think about initiatives

0:06:30.541,0:06:33.308
that will enable you to win[br]in the medium term,

0:06:33.308,0:06:35.240
initiatives to drive growth,

0:06:35.240,0:06:39.369
actions that will fundamentally change[br]the way the company operates,

0:06:39.369,0:06:41.000
and very importantly,

0:06:41.000,0:06:44.670
investments to develop[br]the leadership and the talent.

0:06:46.992,0:06:50.790
The third imperative[br]for putting people first

0:06:50.790,0:06:53.486
is to enable people with the capabilities

0:06:53.486,0:06:58.441
that they need to succeed during[br]the transformation and beyond.

0:07:00.584,0:07:04.647
Over the years I've competed[br]in a numer of triathalons.

0:07:04.877,0:07:06.883
You know, frankly, I'm not that good,

0:07:07.047,0:07:10.690
but I do have one distinct capability;

0:07:10.911,0:07:14.548
I am remarkably fast at finding my bike.

0:07:15.006,0:07:16.303
(Laughter)

0:07:16.885,0:07:18.625
By the time I finish the swim,

0:07:18.824,0:07:20.734
almost all the bikes are already gone.

0:07:20.944,0:07:22.269
(Laughter)

0:07:24.476,0:07:28.354
Real triathletes know that each leg --

0:07:28.578,0:07:30.360
the swim, the bike, the run --

0:07:30.561,0:07:32.775
really requires different capabilities,

0:07:32.953,0:07:33.954
different tools,

0:07:34.149,0:07:35.081
different skills,

0:07:35.286,0:07:36.378
different techniques.

0:07:36.723,0:07:39.230
Likewise when we transform organizations,

0:07:39.455,0:07:41.845
we need to be sure[br]that we're giving our people

0:07:42.098,0:07:45.067
the skills and the tools[br]they need along the way.

0:07:46.338,0:07:47.364
[Cronas],

0:07:47.364,0:07:49.702
a global software company,

0:07:49.702,0:07:54.650
recognized the need to transfer[br]from building products --

0:07:54.650,0:07:56.383
software products --

0:07:56.383,0:07:59.487
to building software as a service.

0:08:00.077,0:08:03.330
To enable its people[br]to take that transformation,

0:08:03.330,0:08:06.105
first of all they invested in new tools

0:08:06.105,0:08:11.256
that would enable their employees[br]to monitor the usage of the features,

0:08:11.256,0:08:14.619
as well as customer satisfaction[br]with the new service.

0:08:14.619,0:08:18.290
They also invested in skill development,

0:08:18.290,0:08:20.074
so that their employees would be able

0:08:20.074,0:08:23.017
to resolve customer service[br]problems on the spot.

0:08:23.221,0:08:24.251
And very importantly,

0:08:24.251,0:08:27.996
they also reinforced the collaborative[br]behaviors that would be required

0:08:27.996,0:08:32.560
to deliver an end-to-end seamless[br]customer experience.

0:08:32.977,0:08:34.575
Because of these investments,

0:08:34.575,0:08:37.966
rather than feeling overwhelmed[br]by the transformation,

0:08:37.966,0:08:41.248
[Chronas] employees[br]actually felt energized

0:08:41.248,0:08:43.870
and empowered in their new roles.

0:08:44.604,0:08:46.729
In the era of "always-on" transformation,

0:08:46.729,0:08:48.333
change is a constant.

0:08:48.333,0:08:50.327
My fourth imperative therefore

0:08:50.327,0:08:54.156
is to instill a culture[br]of continuous learning.

0:08:55.185,0:08:58.091
When Satya Nadella became[br]the CEO of Microsoft

0:08:58.091,0:09:00.122
in February 2014,

0:09:00.122,0:09:03.005
he embarked on an ambitious[br]tranformation journey

0:09:03.005,0:09:07.196
to prepare the company to compete[br]in a mobile-first, cloud-first world.

0:09:07.899,0:09:10.231
This included changes to strategy,

0:09:10.231,0:09:11.336
the organization

0:09:11.336,0:09:12.438
and very importantly,

0:09:12.438,0:09:13.880
the culture.

0:09:14.539,0:09:19.755
Microsoft's culture at the time was one[br]of [silos] and internal competition ...

0:09:19.755,0:09:22.189
not exactly conducive to learning.

0:09:22.701,0:09:25.335
Nadella took this head-on.

0:09:25.782,0:09:29.405
He rallied his leadership[br]around his vision

0:09:29.405,0:09:32.544
for a living, learning culture,

0:09:32.544,0:09:35.055
shifting from a fixed mindset,

0:09:35.055,0:09:38.317
where your role was to show up[br]as the smartest person in the room,

0:09:38.317,0:09:40.170
to a growth mindset,

0:09:40.170,0:09:45.855
where your role was to listen, to learn[br]and to bring out the best in people.

0:09:46.960,0:09:48.338
[...early days,]

0:09:48.338,0:09:52.385
Microsoft employees already know[br]to shift in the culture ...

0:09:52.385,0:09:56.462
clear evidence of Microsoft[br]putting people first.

0:09:56.867,0:10:00.580
My fifth and final imperative[br]is specifically for leaders.

0:10:01.468,0:10:03.121
In a transformation,

0:10:03.121,0:10:05.537
a leader needs to have a vision,

0:10:05.537,0:10:08.873
a clear road map with milestones

0:10:08.873,0:10:12.956
and then you need to hold people[br]accountable for results.

0:10:13.229,0:10:14.228
In other words,

0:10:14.228,0:10:15.907
you need to be directive.

0:10:16.553,0:10:19.802
But in order to capture the hearts[br]and minds of people,

0:10:19.802,0:10:22.432
you also need to be inclusive.

0:10:22.904,0:10:26.431
Inclusive leadership is critical[br]to putting people first.

0:10:28.117,0:10:30.270
I live in the San Francisco Bay area.

0:10:30.850,0:10:31.853
And right now,

0:10:31.853,0:10:34.941
our basketball team[br]is the best in the league.

0:10:35.264,0:10:37.925
We won the 2015 championship,

0:10:37.925,0:10:40.409
and we're favored to win again this year.

0:10:40.916,0:10:42.939
And there are many explanations for this.

0:10:42.939,0:10:45.407
They have some fabulous players,

0:10:45.407,0:10:47.318
but one of the key reasons

0:10:47.318,0:10:52.845
is their head coach, Steve Kerr,[br]is an inclusive leader.

0:10:53.642,0:10:56.292
When Kerr came to the Warriors in 2014,

0:10:56.292,0:10:59.170
the Warriors were looking[br]for a major transformation.

0:10:59.691,0:11:03.972
They hadn't won a national[br]championship since 1975.

0:11:05.849,0:11:09.162
Kerr came in and he had a clear vision,

0:11:09.162,0:11:11.824
and he immediately got to work.

0:11:12.630,0:11:14.133
From the outset,

0:11:14.133,0:11:17.779
he reached out and engaged[br]the players and the staff.

0:11:18.256,0:11:22.806
He created an environment of open debate[br]and solicited suggestions.

0:11:23.517,0:11:25.373
During games he would often ask,

0:11:25.373,0:11:27.799
"What are you seeing that I'm missing?"

0:11:28.197,0:11:33.988
One the best examples of this came[br]in game four of the 2015 finals.

0:11:34.844,0:11:38.293
The Warriors wer down two games to one

0:11:38.293,0:11:42.919
when Kerr made the decision[br]to change the starting lineup;

0:11:42.919,0:11:45.950
a bold move by any measure.

0:11:47.574,0:11:50.816
The Warriors won the game[br]and went on to win the championship.

0:11:51.225,0:11:52.500
And it is widely viewed

0:11:52.500,0:11:56.313
that that move was the pivotal[br]move in their victory.

0:11:57.718,0:12:01.508
Interestingly, it wasn't[br]actually Kerr's idea.

0:12:02.806,0:12:06.587
It was the idea of his 28-year-old[br]assistant, Nick U'Ren.

0:12:07.445,0:12:09.619
Because of Kerr's leadership style,

0:12:09.619,0:12:12.825
U'Ren felt comfortable[br]bringing the idea forward.

0:12:13.506,0:12:15.553
And Kerr not only listened,

0:12:15.553,0:12:17.959
but he implemented the idea

0:12:17.959,0:12:19.506
and then afterwards,

0:12:19.506,0:12:22.813
gave U'Ren all the credit ...

0:12:22.813,0:12:28.389
actions all consistent with Kerr's highly[br]inclusive approach to leadership.

0:12:29.536,0:12:32.198
In the era of "always-on" transformation,

0:12:32.198,0:12:35.854
organizations are always[br]going to be transforming.

0:12:37.445,0:12:40.933
But doing so does not[br]have to be exhausting.

0:12:42.322,0:12:44.513
We owe it to ourselves,

0:12:44.513,0:12:46.520
to our organizations

0:12:46.520,0:12:49.407
and to society more broadly

0:12:49.407,0:12:53.310
to boldly transform our[br]approach to transformation.

0:12:54.143,0:12:55.967
To do that ...

0:12:55.967,0:12:59.347
we need to start putting people first.

0:12:59.803,0:13:01.361
Thank you.

0:13:01.361,0:13:03.195
(Applause)